MPIC STOCKS RISE AFTER APOLOGY FROM THE PRESIDENT


Investors’ Interest On MPIC

Metro Pacific Investments Corporation (MPIC) has received a positive reaction from the investors after Mr. Pangilinan and the Zobel brothers got an apology from President Duterte for his opinions about their companies in the past months. The Philippine Stock Exchange data displayed that P1.48 billion or equivalent to 533.84 million MPIC shares were traded last week, which made it the fourth most actively traded stock in the local market. Last week, MPIC closed at P2.86 apiece, 11.3% higher than P2.57 last April 30. Here are the other details of the news.

The Apology Had A Positive Effect

The reconciliatory message of the president was the biggest factor of MPIC’s rise last week. The apology deescalated the tensions between the biggest water concessionaires and the government. This move has somehow lowered the regulatory risks and gave light to the prospects of negotiations. Because of this, a favorable water concession contract is possible to happen between the parties. The apology was received last Monday, during the president’s speech. The president said that it was because of the companies’ assistance during the coronavirus pandemic, after which the share price rose by 13.5% the next day.

The Issue

President Duterte gave the threat to file economic sabotage cases against the two large water companies—Maynilad and Manila Water because of the supposed onerous provisions that are included in their contracts with the government. The revised version of the contracts for these two firms is targeted to be finished before December ends. With the revised contract, the government said that it is giving the two firms an opportunity to renegotiate the terms of their agreement. The fundamentals of the Manila Water are fine but considering this issue, the fate of its share price and the company are unstable because of the developments of the concession agreement talks. This issue changed the picture.

The Water Concessionaire Issues

For the past months since the issue began, the two water concessionaires have been sliding, especially Manila Water. Investors were speculating on the future of the concession agreement of Maynilad Services, Inc. and Manila Water. The attention of investors was caught since the tirades of President Duterte against these two water concessionaires. The uncertainties that emerged because of the issue had an effect on the investors, pushing them to sell continuously. Manila Water had been hopeful despite the issues. And because of the ECQ and continuous help of the two water concessionaires to the Filipino people, it seems like the situation is getting better for them.

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.





Source link

Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • MisterWong
  • Y!GG
  • Webnews
  • Digg
  • del.icio.us
  • StumbleUpon
  • Reddit

Leave a Reply

Your email address will not be published. Required fields are marked *